1. Legal Possibility of Unequal Sharing

• Indian law allows partners to share profits unequally
  
• The Indian Partnership Act permits flexibility in sharing terms
  
• Profit-sharing ratio must be clearly mentioned in the partnership deed
  
• There is no requirement for equal distribution unless otherwise agreed
  
• Mutual consent of all partners is essential to establish unequal sharing
  

2. Basis for Unequal Distribution

• Contributions to capital, skill, and time may influence the ratio
  
• Some partners may take greater business responsibility
  
• Risk-sharing and liability agreements can affect profit terms
  
• Prior arrangements and mutual understanding define distribution
  
• Partners may agree to compensate for other non-financial efforts
  

3. Importance of Written Agreement

• The partnership deed should record specific sharing ratios
  
• Written terms prevent confusion and future disputes
  
• A deed must be signed by all partners for legal validity
  
• Unequal sharing must be transparent and agreed in advance
  
• Oral agreements are legally valid but not advisable for unequal terms
  

4. Impact on Internal Relations

• Clearly defined roles support the acceptance of unequal sharing
  
• Partners must respect the agreed structure for harmony
  
• Communication helps avoid conflict over contributions and returns
  
• Regular review of roles andthe  sharing ratio maintains fairness
  
• Revisions can be made through mutual agreement at any time
  

5. Default Rule in Absence of Agreement

• If no profit-sharing ratio is defined, profits are shared equally
  
• This applies even if capital or effort differs among partners
  
• Legal assumptions may not reflect the intended arrangement
  
• Proper documentation overrides the default legal rule
  
• It is essential to clarify the sharing terms in all formal agreements